Waterways Corporation

Budgeted Costs for Irrigation Projects for 2009

Material

Time Loading

Charges Charges

Labor wages (5,750 hours) $240,000

Supervisors salary $60,000

Clerical and accountant wages 60,000 4,000

Irrigation supplies manager 40,000

Overhead 53,950 21,000

Total $353,950 $125,000

Waterways has budgeted for 5,750 labor hours.It desires a $14 profit margin per hour of labor

and 16% profit on materials. It estimates the total invoice cost of materials in 2009 will be

$640,000.

Instructions

(a) Compute the rate per hour of labor.(Round to two decimal places.)

(b)Compute the material loading charge.(Round to two decimal places.)

(c) Waterways has received a request for a bid to do a parkway for the city.The irrigation man-

ager estimates that it will take about a month to complete the project and require 480 hours

of labor and $80,000 of materials.Compute the total estimated bid for the parkway project.

please show all your work thanks